Local reaction to bailout rejection, markets down Save Email Print
Posted: 1:56 AM Sep 30, 2008
 Last Updated: 7:11 AM Sep 30, 2008
 Reporter: Sarah Platt
Email Address: sarah.platt@wndu.com
44 comments
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Even with local banks' reassurance, the Wall Street worries continue to cause many concerns for those on Main Street. Many folks cringed as they watched stocks plummet.

Millions have watched the value of their 401(k) plans or retirement accounts go south. The financial worries are particularly troubling for people who are approaching retirement, many watching their nest egg take a huge hit. “Went online and checked my 401 (k) because I heard that the stocks had plummeted big time-- as soon as they heard that the house had vetoed the bill,” explains Heather Kole of South Bend.

“This afternoon got quite scary for all of us,” says Cathy Brandt. Brandt admits her retirement might be pushed back more years than she planned for. “Of course with the market lately, we're all saying we have to work another year, another 5 years. It's a concern. How are we going to avoid things, healthcare, you know?”

30-year-old Heather Kole's retirement is still decades away. Right now she's just trying to buy gas and groceries and save for her kids. “So right now retirement is way far off… I'm worried about sending my kids to college and paying the bills to get there,” says Kole.

Financial advisor Tyler Glynn says people shouldn't panic. He says the best thing to do is ride out the market and diversify your stock portfolio-- so all your eggs aren't in one basket. “If you have balance you will have disappointment, but you won't have everything go to zero for you at this point in time,” says Glynn.

And while everyone watches this wild financial ride-- many say they're optimistic things will calm. The question is when? “I don't think our economic system will fold, I think we'll survive. It's going to take some hard times and some hanging in there to get through it,” says Brandt.

Some economists say it's a good thing the bailout plan didn’t work. Newscenter 16 spoke with Zhi Da, a professor of Finance at Notre Dame. Da is one of about 200 economists who signed a petition opposing the bailout plan. They say they want lawmakers to take more time and get the bailout plan right, instead of rushing to pass something through.

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Posted by: Willie Location: Niles on Oct 2, 2008 at 07:52 AM
"I like rich people - so much that I aspire to become one." --- Well said, Rusty. Of course, the democrats would rather that you remain one of the "middle class" they claim to care so much about (maybe they should start using the word 'proletariat' instead). OK there's my partisan rant; that said, Dem or Repub, if the government takes over the banking system in this country it's just one more step toward socialism.
Posted by: rusty Location: mishawaka on Oct 1, 2008 at 08:01 PM
"free markets" in quotes because they are NOT free. They are over-regulated. Increased taxes on the wealthy to pay for all the poverty during a low in the business cycle CAUSED the great depression. (where have I heard this song before???) Rich people employ the rest of us, so I like rich people-so much that I aspire to become one. btw, the CRA loans (100% financing, no income verification etc) are bundled and sold as securities with good loans. Those stats are bunk. nice try. I'm gone, there is no sense in arguing with stupid, because they will just drag you down to their level and beat you with experience. I'm done.
Posted by: Hey Charlie on Oct 1, 2008 at 09:29 AM
If you are sick of the leadership, then vote it out in November and find a blog where you can push on Bush. This blog has nothing to do with him. It is about a 700 billion dollar bailout that the common, working, live within your means people are told they must pay for. What is criminal is that they are not the ones responsible for it. People who make 35k a year and wanted a 250k home and a new car are and the government and their feely good economics and blackmail of the banks by minorities and the credit default swap gamblers in finance are at fault.
Posted by: Chaz Location: South Bend on Oct 1, 2008 at 08:45 AM
Less than 25% of the loans in default belong to minority or low-income people. The rest are middle and upper class. And if you think that 1 million people defaulting on their loans, only a 40% increase, should be enough to bankrupt this many companies, you don't understand the way markets should work. Also, it's hard to blame CRA for the mortgage meltdown when CRA doesn't even apply to most of the loans that are behind it.Half of sub-prime loans came from those mortgage companies beyond the reach of CRA. A further 25 to 30 percent came from bank subsidiaries and affiliates, which come under CRA to varying degrees but not as fully as banks themselves.Perhaps one in four sub-prime loans were made by the institutions fully governed by CRA. I'm not only current on my mortgage, fixed rate by the way, I'm paid about a year ahead and will pay off my 30 year loan in about 12 years. "Free markets" caused the great depression, the S&L crisis in the 80's and this mess. 0 for 3. Great record huh?
Posted by: Jack Location: Culver on Oct 1, 2008 at 07:23 AM
I don't even know who I'm responding to since they didn't have the stones to put their name on their comment. But, if more money is loaned on property than it's worth or the people do not have the means to repay it, that' usury and it is criminal. And, this is what is happening. The last time I went to refinance, they asked me how much I needed it valued at and that's what he valued it at for the loan. And, it's paid off now, btw.
Posted by: rusty on Sep 30, 2008 at 06:37 PM
chaz, come on. who signed the loans? Who took adj rates while apr's were at 40 yr lows? you just don't make sense. No regulation is fundamental to free markets. maybe you have no business talking about this issue. btw, is your mortgage current??
Posted by: marlene Location: medaryville on Sep 30, 2008 at 06:15 PM
On your report you said credit was going to be harder to get. I hope so. OUR's and the governments spending more than we can afford and the banks wanting to make loans that people couldn't afford it, is what got us into this trouble. Who would want to buy a new car now, or house? Gas is high , Groceries& insurance are high, and the wage lag is a lot larger than normal.Its time for all of us to start living within our means. then and only then maybe this problem will end. It is not going to be easy, and it is not going to go away quickly, But sending good money after bad is not the answer, while it may look like a quick fix in the long run it isn't and it could even make it worse.
Posted by: mike Location: south bend on Sep 30, 2008 at 06:02 PM
Anonymous sep 30 1:17 just say it your blaming minorities just like your friends at fox news.
Posted by: Mark Location: South Bend on Sep 30, 2008 at 05:31 PM
It is interesting that the Democratic talking points all claim it is a lack of regulation forced through by Republicans. This is simply not true. Liberal congressmen like Barney Frank pushed Fannie Mae and Freddie Mac to give loans to families that could not afford them. As a country, we can't afford to give everyone in the US a middle class lifestyle, homeownership, free medical care and a college education. There just isn't enough money to go around. We tried to give everyone a median housing and now we are all paying the bill. We get what we work for and nothing else. If the market doesn't value what you do, find another line of work. I did.
Posted by: Charlie Location: Elkhart on Sep 30, 2008 at 05:13 PM
So you are happy with the fact that Bush started with a budget surplus and now we face the largest national deficit ever known to this nation? We have spent billions upon billions on a war we should have never started, wasted many many young lives, facing financial ruin, hated by many other countries? You call that good leadership? Call me a liberal if you wish, you are ignorant with your heads buried in the sand. Sad Sad Sad. I have never missed a day of work in my life, never taken a handout, pay my taxes and all my bills...just very sick of the inept leadership and course this man has put this country through.
Posted by: Amused on Sep 30, 2008 at 04:24 PM
You fools are so dumb. Do you really think that if the banks fail, your debt will be washed away? If the banks fail there will be NO money to loan and people will stop spending creating job loss (mostly those jobs will be those of uneducated people like you) which will result in you losing your homes and everything you own. So is this what you want? Works for me!
Posted by: Ph.D. Location: South Bend on Sep 30, 2008 at 04:21 PM
A recession is when your neighbor loses his job and his home. A Depression is when you lose your job and your home. The only difference.
Posted by: DJ Location: SouthBend on Sep 30, 2008 at 03:48 PM
they should change line one of the bill to read. The property of the top 10 executives of each bank bailed out will have ALL PROPERTY AND ACCOUNTS SEIZED by the U.S. Goverment. Then see if they want their bailout!! The American Consumer is nearly 1 trillion in Debt. And they want to keep it that way. The Banks that created this problem deserve to fail. Then their executives need to go to jail.
Posted by: Chaz Location: South Bend on Sep 30, 2008 at 03:35 PM
This is not about homeowners not payign their loans. This is about companies selling deceptive loans. Banks lending out 40 and 50 times more than they hold in reserve. Banks counting on other banks to fail. Banks having no regulation. All lobbied for and pushed through under republican control. If you honestly think that home foreclosures are at the root of this problem then you have no idea what's going on and no business discussing what's going on.
Posted by: Anymous Location: Michigan on Sep 30, 2008 at 03:00 PM
Hey for all you Upton fans, he voted yes for the bail out! I am thinking every state needs to check and see how there Congressman and Senators vote?
Posted by: Bobbie Location: South Bend on Sep 30, 2008 at 02:56 PM
I also am opposed the bailout plan. They are rushing this too fast. I'm not pointing fingers, but let them sweat it out. Maybe a lesson learned????
Posted by: Anonymous on Sep 30, 2008 at 02:17 PM
The democrats and their socialist mandate of everyone having the right to own a home, no matter the risk is what caused this. Bush tried to stop in 2003. McCain others in Congress tied in 2005. Both times, shot down the demos because they felt it would be discrimination. All you demos blaming Bush---reality check folks, who's idea was it to make banking institutions make high risk loans? CARTER and the Congress... CRA 1977 -- Look it up. Then Clinton in 1995 in the housing act, LOOK IT UP. Then look up Obama Freddie Mac and Lawsuit. My, my... the dude with the golden egg sure has your blessings doesn't he! We're spriraling toward a socialist country. Stop it now. Stop it while we still can!
Posted by: Willie Location: Niles on Sep 30, 2008 at 02:05 PM
Obviously Charlie knows nothing of what he speaks. I realize that President Bush has become the lightning rod for irrational liberal hate in this country, but this is most definitely not his fault. In fact, if you want to assign blame you can look back to 1977 and Carter's 'Community Reinvestment Act', which required banks to provide credit to 'underserved' segments of the population. This was exacerbated in 1993 by Clinton's mandate to increase access to mortgage credit for inner-city and distressed rural areas. Combine this with FNMA and FHLMC accounting scandals (see Jamie Gorelick) and irresponsibility regarding bad debt, and you have all you need to know about why the Dems want to push off blame onto the Republicans and this administration. Which is laughable also because the Dems control both houses of Congress and could easily pass this measure on their own. You voted for "Change" two years ago; how's that working out?
Posted by: Bob Location: Knox on Sep 30, 2008 at 01:30 PM
Hope everyone is happy with their president. Bush won Indiana both times you people have yourselves to blame. I am sickened by all the McCain Palin signs scattered everywhere, you people want 4 more years of this? Have you even seen what a patheic job palin AND mccain have done so far? Blind blind blind. Cue the spoken like a true liberal comments. So what, you can call me what you want it doesn't bother me because I know what I am, I am a human, not republican, democrat, independent, american, russian, iraqi, scott, brit, mexican. I am human.
Posted by: DB Location: Nappanee on Sep 30, 2008 at 01:05 PM
Charlie - you're clueless and obviously are completely ignorant. Bottom Line - it all boils down to greed and the reason none of the CEO's will ever have to testify in any Congressional Hearing is that these guys are so tied in to ALL Politicians - it would likely come out and we all know Washington is NOT gonna let that happen! Nice that we put MLB Players in Congressional Hearings - but none of the people that approved these loans. Funny how that works.
Posted by: To Gary on Sep 30, 2008 at 12:36 PM
Gary is wrong, if people want to take out more than they could afford, that is their issue not the government. The banks that sold the loans were not affect unless they have the bonds that the mortgages were packaged into. If they would require banks to insure the bonds that they package for home loans then banks wouldn't have been so risky. You can't blame the government for allowing these loans to be made, they should not regulate, it is shown that this makes it worse. We have gone years in the state we are in now, and since the government started putting their hands in the mix, the stock market has shown this. The government single handedly almost froze the commerical lending market. Home loans, etc are still easily available to those with good credit and those who could afford it. I am for a free market, we are in a democratic society, if you want socialist policies (Barak Osama), move to Cuba. Nothing is free, those who can't afford healthcare shoudl not be treated like tod
Posted by: To Jack on Sep 30, 2008 at 12:29 PM
You obviously don't know much about the economy or Wall Street as you state, because a bank loans money to someone who fails to pay that is not a criminal offense. Also the 700 Billion Bailout only consist of 200 billion that is available now for the bank to pull upon. Another 100 million with the sign off of the president and then rest with congressional authority. The issue is not however in the consumer loan space but the commerical loan arena. Home loans are a very low part of the issue but do contribute. Please read the bill or understand the facts before you make accusations and understand what is criminal vs not. If the documents were forged to pass the lending standards then it is criminal but we are talking about individuals who took out way more than they could afford, they are personally responsible for the issues that THEY put themselves into. This is why we should NOT bail out the home owner on this but let them fail, entire corporations are another discussion
Posted by: Steve Location: South Bend on Sep 30, 2008 at 11:54 AM
Funny how the urgentness of this deal has been cast asside so congress can take holiday. It makes this whole package seem even more like a shady deal. If it's urgent, stay and get it done. If it's not lets take a few weeks to understand all the details and all the earmarks that are trying to be slipped in. I'm sure when they get back from holidy, it will be "urgent" again.
Posted by: Jack Location: Culver on Sep 30, 2008 at 11:34 AM
This is why republicans want less government and deregulation. So they can commit criminal acts and not get caught.
Posted by: Jack Location: Culver on Sep 30, 2008 at 11:26 AM
Hey guys, I'm not a big investor and I don't understand all this Wall Street stuff. But, if you just do some simple math it is kind of revealing. They want 700 billion dollars from the American taxpayers to resolve this mess. There are 1000 millions in a billion. So, if each bad debt averaged 1 million dollars, (which, I'm sure is a pretty big average), our financial experts wrote bad paper 700,000 times. This isn't just a mistake, it's criminal. We need to go after the folks that we are trying to bail out and throw them in jail and take away their assets to pay for this, because I bet a few of them made a bunch of money on this mess. In the past eight years, we have had the rich get a bunch richer and the rest of us poorer and we need to change what's happening in Washington. And while I'm on my soapbox, I can't believe Congress took a holiday to celebrate the Jewish New Year with all this going on and after voting the bailout down and not having another plan. I
Posted by: HoHum on Sep 30, 2008 at 11:21 AM
To Charlie....spoken like a true blue liberal
Posted by: Sitting Good on Sep 30, 2008 at 11:04 AM
Hey all you IDIOTS that want this to fail, you are the ones that are going to lose BIG time. This bailout is to help you, not the rich. I say give them what they want and remind all the poor that it is exactly what they wanted. Give them Obama too, they deserve him!
Posted by: Stacy Location: S.B. on Sep 30, 2008 at 10:45 AM
The democrats have control of the house of representatives. If all democrats vote for the bailout it could pass in minutes.. but it's an election year, so being elected is more imporatant than the people. I wish we could vote them ALL out......
Posted by: Shoppy Location: Osceola on Sep 30, 2008 at 10:25 AM
Clinton and Bushy have destroyed this great country of ours right along with the greedy CEOS and even our own congressmen and congresswomen. Only when America wakes up and cleans house will this change. Instead of giving CEOs 19 million how about Jail time and confiscating their property?
Posted by: Hey Charlie on Sep 30, 2008 at 09:22 AM
You could not be more wrong. Fannie Mae and Freddie Mac were given the OK to allow "at risk" people to apply for credit during your buddy Clinton's Admin. It is called "feely good" economics. Also in 2005 the republicans had hearings into "credit swaps" and tried to stop them, EVERY SINGLE demo voted against bringing it to the congress for a vote. You could not be so moronically wrong. I know, I am an investment accounts executive, and you sir, are making yourself into a no facts clown.
Posted by: ken Location: sturgis on Sep 30, 2008 at 09:14 AM
I am mad as hell. I have downloaded the first bill, the working draft, and the proposed bill. it's clear as mud. The United States Congress continues to play politics. NOBODY, I repeat, NOBODY has come on TV to explain this to me. I have repeatedly tried to contact my represenative FRED UPTON With absolutly no success. HOW ARE YOU GOING TO VOTE, BUT MORE IMPORTANTLY, WHY? I watched the entire house debate yesterday. All I say and heard was "do it or die". Looking around the house, there was no one there, espically my represenative FRED UPTON. I don't want to hear from "talking heads". Don't threaten me, Inform me. YES, I AM MAD AS HELL, and any AMERICAN TAXPAYER SHOULD BE TO. Is this the way we are represented. I this is the way we are served, this may be the time to take a broom to the house of representives. FRED UPTON, YOU WORK FOR ME, it is your job to keep me informed. If you don't have time, IT IS TIME TO SLOW DOWN. I am an independent. I helped put you i n
Posted by: kat Location: michiana on Sep 30, 2008 at 08:51 AM
Why should we have to pay for the errors of Wall Street? This is only going to "save" Wall Street for a little while and in no time we're going to be back here trying to figure out how to bail out Wall Street again. No one is concerned about helping the people that are loosing their homes and that is the real problem! If people don't have money to pay for their houses and gas for their cars or food for their families, how can anyone expect the economy to survive? With inflation going up and wages staying the same or even going down we're all going to be living in cardboard boxes before long! And the gov't is concerned about saving Wall Street, well what about the rest of the us?? No one is helping me if I get behind on my house payments, why should we the taxpayers have to foot the bill of irresponsible companies?
Posted by: Charlie Location: Elkhart on Sep 30, 2008 at 08:33 AM
Anybody that could read should have seen this coming 8 years ago when they voted for Bush. He bankrupted every company he was in charge of before the republican clowns voted him into office, then 4 years later again voted him in. Well you got what you voted for and now he has bankrupted the greatest nation in the world. If you don't believe the above...do some reading. The guy is brain-dead!
Posted by: Jason Location: Goshen on Sep 30, 2008 at 08:23 AM
Well said Gary. The we the people need to get better with our money. I am sick of seeing "needy" people complaing they don't have any money, but are smoking and talking on cell phones. These are the same people looking for handouts. So don't give me "The government won't bail me out!" Guess what, they are, every time you cash your welfare check.
Posted by: Nick Location: Niles on Sep 30, 2008 at 08:22 AM
Gary has it 100% right. 40% of the problem is people getting loans they know they can't afford, 40% is banks giving loans to people they know can't repay and 20% is governments fault for not stopping sub prime lending. The government encouraged banks to give mortgages to people who can't afford them. People need to get back to the idea that if you have to borrow money then you can't afford it! They need to do something, just take enough time to get it right, with the money they give should come stipulations that they can no longer loan to sub prime people. I know that means alot of people won't be able to buy what they think they deserve, but that's what got us into this mess. People also need to realize that those same "Big Evil" companies are a major part of the economy, and we aren't just bailing them out, but trying to stabilize our economy. It's not really a bailout anyway, it needs to be looked at like an investment. There is a chance we might make money or break even.
Posted by: Gary Location: Millersburg on Sep 30, 2008 at 07:20 AM
No one to blame but us Americans. We have to have everything right now so we use credit cards to get everything we want. Then we refinance our overmortgaged homes and refinance our maxed-out credit cards on top of it so we could pay them off in 30 YEARS! So now that XBox and 60 inch plasma TV are being paid off in 30 years. Will you still be playing XBox on that TV in 30 years? Makes a lot of sense. Now we expect the government to bail us out? The very same government that has no concept of budgeting. WAKE UP AMERICA! Be responsible for yourself and don't depend on these idiots to bail you out.
Posted by: Bonnie Location: Michiana on Sep 30, 2008 at 06:38 AM
This bailout had no enforcement provisions for the so-called oversite group to monitor the spending of 700 billion and no penalities to force banks/lenders to rewrite people's mortagages to avoid foreclosures. No teeth anywhere in the entire piece of legislation, using words like "suggested" when referring to government being paid back from the bailout. Over 200 economists wrote to Congress and said this bill might actually worsen the financial crisis. (Michael Moore 9/29/08). We have 72 hours to write our congressman and make sure that the pork is cut out of this bill and that main street is protected not the fatcats in DC or Wall Street.
Posted by: G.L. Beckman Location: Benton Harbor, Mi on Sep 30, 2008 at 06:24 AM
I wonder if the Feds will bail me out? I had to wait for my neighbor to wake up to contact you as I HAD to do away with all extra's like internet, denist, eye doctor, doctors period. I need to have 2 teeth pulled or fixed, I've needed to go get my knee fixed but I can't do that on my looks I also can't afford to go Dollar Store reading glasses. By the grace of God I still have my shack and and there is some what food in the house. I haven't got to see my Mother in 1 1/2 years, I just can't afford to drive the 9 hours to see her. So maybe they will help me, I've cut out everything, any suggestions? I do work, I will do extra, that is the only reason I have my house!!!!!
Posted by: Erik Location: Elkhart on Sep 30, 2008 at 06:16 AM
I do not understand why we should bailout a bunch of fat cats that treated our money like they were in vegas they deserve what they get.
Posted by: o Location: laporte on Sep 30, 2008 at 06:01 AM
were all gonna suffer now
Posted by: Teri Location: Indiana on Sep 30, 2008 at 12:53 AM
This whole thing is so disgusting,I cannot find the words to describe what I am feeling! This country will never know the truth behind anything.Dems and Reps,alike,are responsible for this mess but,yet,they continue to point the finger. You have to be a complete idiot in order to believe anything our government tells us;they say what they want us to hear! This country has got themselves backed into a corner and does not have any idea how to get out.The bottom line is;the little people will end up paying for this mess. It has and,always will be,that way!